US industrial production sees third straight monthly gain

There are signs of recovery within the US manufacturing sector after the Federal Reserve reported a rise in industrial production for the month of September.

The US central bank said output at the nation’s factories, mines and utilities grew 0.7% during the month - higher than the 0.2% rise expected by analysts and follows the rise of 1.2% in August.

However, while the US industrial sector is leading the way in recovery, other parts of the economy are lagging behind, according to analysts.

The retail sector appears to be struggling after the Commerce Department recently revealed a fall in US retail sales for the month of September as the US Government’s Car Allowance Rebate System (CARS), branded the “cash for clunkers” scheme ended.

According to the organisation, retail sales in the world’s largest economy fell 1.5% on the month - the largest amount in 2009 to date.

The news comes after a strong performance in August when US retail sales grew 2.7% as a result of the cash for clunkers scheme and represented the biggest monthly gain since January 2006.

However the scheme ended after the $3 billion funding set aside for it ran out.

Finally it is hoped that the US will exit recession and experience positive growth in the third quarter.

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